Brown Betty turned Breadwinner

[Chelsie Hall]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $191,290
Cash invested: $17,000

This was my original primary residence purchased in Dec 2014 for only $152k in a highly sought school district. It's a 4/3 that I did a cash-out refinance in 2020 for $191k. I did an addition with a dining room and home office and remodeled the kitchen. Then I found BP and started renting it in Feb 2023 for $2,545.

What made you interested in investing in this type of deal?

As a single mom living paycheck to paycheck, I thought retirement was a pipe dream. After reading "Rich Dad Poor Dad" in order to break the "poor" cycle for my kids, Audible suggested "The Book on Rental Property Investing" which made me realize that it wasn't too late to break the "poor" cycle for myself.

How did you find this deal and how did you negotiate it?

It's very easy to negotiate with yourself. I just had to talk my kids into moving out of a home that was finally NICE and into a new school district.

How did you finance this deal?

I took out a HELOC for the down payment and closing costs for the home I needed to purchase to make the move.

How did you add value to the deal?

The kitchen remodel and dining room & office addition made the home popular even though her curb appeal is less than desirable. I replaced the carpet, updated the door hardware, and mulched the landscaping before renting.

What was the outcome?

I'm cash-flowing $863 per month—or, $10,359 per year.

Lessons learned? Challenges?

Having a property manager in the beginning took the fear away which enabled me to emotionally take the leap. It taught me a lot, but I'm self-managing now and prefer it this way.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I had a phenomenal mortgage broker, Dennis Knisley at People's Home Equity, for my original purchase of this home. He also helped me with the refinance for the cash I needed to remodel. So he was the obvious choice to walk me through the steps to qualify for my next home.